The Genoa Bridge collapse, neoliberalism, and the Italian left-right coalition government

The deadly collapse of the Morandi Bridge in Genoa, Italy, on August 14 has focused the attention of numerous journalists and commentators on the economic situation of Italy.

• Hilary Clarke and Gianluca Mezzofiore, Genoa bridge collapse came after years of warnings CNN 08/16/2018
• Italy bridge collapse: Genoa death toll rises to 43 BBC News 08/19/2018
• Franz Kössler, Genua: Der Einsturz der Brücke und der Politik Falter 34:2018 22.08.2018 (momentan hinter Abo)
• Walter Mayr, "Schakale und Lügner" Der Spiegel 34:2018 (18.08.2018)
• Thomas Migge et al, "Ein Sommernachtsalptraum" Profil 34:2018 20.08/.2018
• Paola Subacchi, Hard Lessons from Genoa Project Syndicate 08/21/2018
• Christian Wüst in "Tod im Tragwerk" Der Spiegel 34:2018 (18.08.2018) goes into some of the technical issues around the collapse.

The political background

The EU establishment has been in a tizzy since the current Italian government took office in June. It is a coalition of the left-populist Five Star Movement (5Stars) and the right-populist Lega. The Prime Minister from the senior coalition party 5Stars is Giuseppe Conte and Matteo Salvini, the longtime head of the junior partner Lega, is the Deputy Prime Minister and Interior Minister, the latter being the country's chief law enforcement official. Conte is an attorney with very little experience in politics. So it's no surprise that Salvini seems to be the actual government leader on policy.

Salvini has been enthusiastically pressing forward an anti-immigrant policy, which has included banning ships carrying passengers rescued at sea from the high risk immigrant route from Northern Africa. (Alexander Stille, How Matteo Salvini pulled Italy to the far right The Guardian 08/09/2018) Such a ban is a serious rejection of international law. Stefan Schmidt, a sea captain with experience in Mediterranean rescues who is current commisioner for asylum and refugee issues in the German state of Schleswig-Holstein, in this interview talks about the broader issue of sea rescues in the Mediterranean, not simply in relation to Malvinini, in this German-language interview, Stefan Schmidt: "Menschenleben stehen bei mir an erster Stelle" Deutsche Welle 19.08.2018:

Salvini's actions on the chronic refugee crisis are anti-EU and narrowly nationalistic.

And defenders of democracy and the EU see good reason to worry about the direction he's going, as Stille reports:

Salvini’s rise to power has heightened concerns in Italy about the escalation of racist and xenophobic violence in the country. Dozens of attacks on black people and Roma have been recorded in the last year, all over Italy, from Treviso in the north to Gioia Tauro in the south, including Florence and Rome. The attacks range from drive-by shootings with air guns, in which the attackers were reported to shout “Salvini!” to the assassination of a Malian trade unionist campaigning for fair pay for migrant workers. An Italian athlete of Nigerian descent, Daisy Osakue, the Italian under-23 champion discus thrower, was hit in the eye by an egg thrown from a car. Police have been pursuing attackers and making arrests, but the government has been more reticent. After a torrent of criticism for his anti-migrant policies – culminating with the headline “Get behind me, Salvini” on the cover of Italy’s largest Catholic magazine – Salvini responded with a favorite phrase of Mussolini: “many enemies, much honor.” He also insisted that the idea of widespread Italian racism was “an invention of the left”.

He's also making a show of forming common fronts with other nationalist (and pro-Putin) groups, even though the whole notion in a Nationalist International is inherently bizarre. Even though that's exactly what far-right parties in Europe are trying to have. Salvini's stunt this week is to advertise his fondness for Viktor Orbán, the Prime Minister of Hungary, which joins Poland as one of two countries in the EU who seem to have become authoritarian enough to no longer meet basic EU requirements for democracy and rule of law.

Lorenzo Tondo reports in Matteo Salvini and Viktor Orbán to form anti-migration front Guardian 08/28/2018. "The Italian interior minister, Matteo Salvini, and the Hungarian prime minister, Viktor Orbán, have said they are “walking down the same path” after discussing the formation of a common anti-migration front they said would oppose the policies of the French president."

Diplomatically, it also strengthens the impression that Malvini and the Lega are in reality the dominant party in the Italian coalition.

But it's not only the anti-EU refugee policies that causes the EU establishment to worry. The new government is also committed, for the moment, to defying Angela Merkel's austerity politics, which is treated like religious truth in EU economic policy.

The obsession with austerity politics of the Herbert Hoover/Heinrich Brüning cast has meant, among other things, delays in upgrades, repair, and expansion of infrastructure. That's been true even in Germany, where Merkel's governments have been restrained on infrastructure projects.

This is a familiar story. When faced with budget shortages, deferred maintenance is one of the first budget-cutting methods governments resort to. Paola Subacchi describes the larger problem this way:

In Western Europe and the United States, bridges, roads, and railways built in the 1950s and 1960s during the post-war reconstruction and economic boom are now old, obsolete, and overused. Does any developed economy have a long-term strategy to manage its essential infrastructure? Are risks being correctly assessed and mitigated? What are the trade-offs between maintaining and replacing infrastructure approaching the end of its life? And how can citizens influence the public debate about who should pay for infrastructure and where it should be built?

It's not just in Italy this problem is occurring. It's a chronic feature of the neoliberal era ushered in by Ronald Reagan in the US and Maggie Thatcher in Britain.

This attitude toward public infrastructure is seriously different from the time before "when demand-management policies went out of fashion," as Subacchi puts it:

The Morandi Bridge was inaugurated in 1967 with great pomp by Italy’s president. Back then, political capital was built around such projects – and not only because of patronage and corruption. Nowadays, modern democracies seem stuck around the trade-off between collective benefits from infrastructure and individual rights, and large projects are often the kiss of death for a politician’s career. ...

With the can continuing to be kicked down the road while existing infrastructure approaches its expiration date, we can expect many more such headlines in the not-too-distant future.

She also means that more broadly than just for Italy.

The bridge

I'm not going to claim to have any special insight into the technical problems involved. Christian Wüst's article talks at length about how the collapse was supposed totally unpredictable. Wüst explains that the bridge was made from a steel-and-concrete combination whose flaws from rust are very difficult to evaluate.

Only very near the end do we read this:

Nur zwei weitere Brucken dieser Art (Patent Morandi M5) wurden damals gebaut, eine in Venezuela, eine in Libyen. Das Konzept erwies sich als Irrweg. Der Beton schützt die Spannelemente nicht auf Dauer var Rost, wie anfangs gedacht, er kann den Verfall sogar beschleunigen, verhindert eine zuverlässige Prüfung und erhöht unnötig die Masse der Konstruktion.

[Only two other bridges of this type (patent Morandi M5) were then built, one in Venezuela, one in Libya. The concept proved to be wrong. The concrete does not protect the elements of the span from rust over a long time, as was originally thought. It can even accelerate the decline, hinders an adequate examination, and increase the mass of the construction unnecessarily.]

In other words, it sounds like there was good reason for the company responsible for the bridge to be very concerned that the bridge posed serious risks. And that measures needed to be taken to mitigate the risks: repairs, restrictions on traffic and vehicle weights, even replacements of the bridge or parts of it.

The neoliberal bridge and Italian populism

What's that you say? The company that was responsible for it? Why, yes, the bridge was being managed by a private, for-profit company, the holding company Atlantia. According to Franz Kössler, Atlantia (he uses the older name Autostrade per l'Italia) "controls about half of the Italian highways." (my translation)

The Morandi Bridge was originally built a state-owned company, IRI, and opened in 1967. But it long since came under the neoliberal gospel, of which privatization is one of the cardinal dogmas. IRI itself, which as Franz Kössler observes, was once "Italy's largest employer and a center of economic miracle of the postwar era," now has "long since fallen victim to the privatization policy."

When a major bridge collapse like this happens, the citizens obviously should demand accountability for the problem and, at a minimum, a serious and honest answer as to what happened in the disaster. And democracies should expect that their government will take the necessary steps to make sure the country's public infrastructure is safe and adequate.

And the Italian government parties are pointing fingers. Prime Minister Conte and 5Stars are blaming Atlantia and calling attention to the large ownership role of the Benetton family of Italian oligarchs. And, as Walter Mayr reports, Atlantia's operational earnings in 2017 was €2.6 billion ($3 billion at current rates).

But Mayr's Spiegel article treat the idea that there could have been any neglect on the part of Atlantia with contempt. And takes the idea that Italy should reduce it's budget deficit to zero without any reference to actual economic conditions as self-evidently sensible.

Which comes to the left side of Italian populism. Both 5Stars and the Lega want to get out of the current fiscal constraints imposed by the EU. Malvini has blamed the EU for the bridge callapse, which conveniently fits with the Lega's narrow-nationalist, anti-EU outlook..

But the Hoover/Brüning economic policies dominant in the EU are bad. And while I've seen no reason to think the EU specifically directed neglect of the Morandi Bridge, it's also not just demagoguery to link the event to EU austerity policies. And Italy's economy does need a boost, even apart from rickety bridges.

Walter Mayr and and Franz Kössler make a point the some 5Stars figures had opposed a proposed road project that could have reduced traffic on the Morandi Bridge. And Profil that 5Stars "rejects big infrastructure programs on principle for ideological reasons." (my translation) Whether that is more a real ideological commitment of 5Stars or more of a "gotcha" point, I don't know. What does seem obvious is that some serious infrastruction

Italy's banks have been wobbly for a while and their economy is still slow in recovering from the Great Recession that began a decade ago. The Conte-Salvini (or Salvini-Conte?) government is pushing for a more expansive fiscal policy than Merkel and the EU want to allow.

But the combination of shaky banks and a government pushing back against Herbert Hooverish fiscal constraints imposed by the EU could bring a re-run of the Greek debt crisis and the eurozone confrontation of 2015. The Profil article cited above observes:

Die Populisten hatten Zeit genug, um erkennen zu konnen: Budgetdisziplin macht unpopular. Das, in Kombination mit ideologischer EU-Feindseligkeit, konnte Italien zum Sprengsatz der Eurozone machen.

[The {Italian} populists had enough time {since the 2008 economic crisis} to recognize: budget discipline makes you unpopular. That, in combination with ideological hostility to the EU, could make Italy into an explosive charge.]

Daniel Gros takes a wonkish look at the current risks in Italian risk spreads: Fiscal versus redenomination risk VoxEU 08/29/2018.

Former Greek Finance Minister Yanis Varoufakis notes in With his choice of prime minister, Italy’s president has gifted the far right Guardian 05/28/2018:

While it is true that Italy is in serious need of reforms, those who blame the stagnation on domestic inefficiencies and corruption must explain why Italy grew so fast throughout the postwar period until it entered the eurozone. Was its government and polity more efficient and virtuous in the 1970s and 1980s? Hardly.

The singular reason for Italy’s woes is its membership of a terribly designed monetary union, the eurozone, in which the Italian economy cannot breathe and which consecutive German governments refuse to reform.

The Genoa bridge collapse is another reminder that chronic austerity has longterm costs. The metaphorical collapse of the banks may be far more damaging to the economy and become the immediate cause of a new euozone crisis. But literal collapses are happening, too. And costing people who have the misfortune of being on the wrong bridge at the wrong time their lives.

Xenophobic theater - that does real harm to real people

Xenophobia sometimes makes good political theater for rightwing, authoritarian politicians and leaders. That's not to say that center-left and labor parties don't sometimes indulge it, as well. But it works particularly well for authoritarian parties.

We're certainly seeing that right now with Trump's policy of kidnapping children of immigrants at the Mexican border and putting them in makeshift prison camps. This report on flight attendants' reactions to serving on planes acting as the transport to the child prison camps is revealing, Anonymous Flight Attendant On Child Prison Plane Tells All The Young Turks 06/19/2018:

Trump is implementing a solution to what is in many ways a non-problem. Net immigration from Mexico has recently been negative, i.e., more Mexicans return to their country each year than those that move to the US. The American economy in many ways is currently dependent on undocumented workers, particularly agriculture but by no means only that sector. Trump's repeated claims that Mexican immigrants are rapists, murderers, and MS-13 gang members are just not true.

The children coming across the US-Mexican border are certainly not a significant threat to Americans. Even taking into account that some of them may end up in gangs, particularly if their opportunities to integrate into American society are restricted even more.

But dehumanizing immigrant children is a typical xenophobes' propaganda pitch. In Europe, the image of kindergarten kids wearing a hijab (Muslim head covering) is used by the far right and anti-immigrant politicians in Germany and Austria. It's a way of taking innocent or positive images - a headscarf can keep your head warm and dry in the winter, a kindergarten-age girl for most people is an image of someone who needs affected and be protected from harm - are transformed into a scary threat to Western white Christian civilization and a menace of terrorism in the form of a five-year-old girl in a hijab. Which is about as much of a non-problem as it can be. Because not only is a small girl no immediate threat to an adult man or woman in any remotely normal circumstance. But even devout, conservative Muslim families require their kindergarten-age children to wear hijabs.

The American term "anchor baby" serves a very similar function. Anchors keep your boat safe and stable, and babies are harmless and cute. But in the form of "anchor baby," they become a threat of undermining everything dear to white folks who understand themselves as the only Real Americans.

The Austrian Chancellor Sebastian "Babyface" Kurz (ÖVP) is currently promoting what he describes as an "axis of the willing" with Germany and Italy to promote anti-immigrant sentiment and policies in Europe. Kurz on Wednesday was meeting with Bavarian Landeshauptmann (Governor) Markus Söder (CSU) in the Upper Austrian capital city of Linz to promote the position of the German Interior Minister Horst Seehofer, head of the CSU and one of Söder's predecessors as Bavarian Governor, to turn back asylum-seekers at the German border. This is essentially a non-problem, as well. It just gives Seehofer and Söder a way to demonstrate their hostility to immigrants and promote anti-EU sentiment. Seehofer is also using it in the moment as part of a tricky political game with Chancellor Angela Merkel. (Nina Weissensteiner, Kurz und Söder machen im Asylstreit auf enge Spezln statt neutraler Nachbarn Standard 02.06.2018)

Matthew Karnitschnig reports (Angela rises from the ashes Politico EU 06/19/2018):

CSU leader Horst Seehofer, who is also interior minister, agreed to put off enforcing a new rule to turn back refugees at Germany’s borders until after the upcoming European Council summit, in order to give Merkel more time to negotiate with other EU capitals.

It’s a long shot that Merkel will actually succeed in securing a sweeping deal over the next two weeks to return refugees who show up at Germany’s border from Italy or Greece. Whether the CSU is ready for another face-off with Merkel is another matter.

Meanwhile, Kurz' far-right Vice Chancellor and Foreign Minister HC Strache was down visiting with his comrade in the (informal) Nationalist International, new Italian Vice-Premier and Italian Interior Minister Matteo Salvini of the far-right anti-immigrant League party. Salvini attracted favorable attention from xenophobes in his brief time in office by refusing to allow rescue ships carrying refugees from Africa to land in Italy, defying international law. Salvini declared himself and Strache to be "friends and allies in defending our peoples." Defending them, that is from taking refugees rescued from drowning int he Mediterranean Sea. (Vizekanzler Strache bei Vizepremier Salvini in Rom Salzburger Nachrichten 20.06.2018)

Salvini was also thereby "solving" a non-problem. Europe does face a continuing long-term crisis in emigration from the Mideast, Afghanistan, and North Africa, not incidentally places where the United States has been fighting wars for the last two decades, more-or-less. A surge in refugees in 2015 set off a political panic that has not yet ended, although immigration declined drastically the following two years and is significantly down even in Italy from 2018. "Despite recent immigration data from the Italian interior ministry showing a 76 percent drop in arrivals in the first few months of the year, the country’s new allies [Austria and Hungary] have migration [sic] as a prime-mover in common, though they differ significantly over what to do about it." (Jacopo Barigazzi, How Italy plans to blow up Brussels Politico EU 06/18/18)

But real harm to real people and real institutions can come from this kind of nationalist demagoguery. Salvini has also announced his taking moves to more closely monitor Roma (Eric J. Lyman, Italy's interior minister wants census for Roma; critics call controversy 'racist' USA TODAY 06/19/2018) in Italy and expel some of them.

Economist and former Greek Finance Minister Yanis Varoufakis tweets:

Salvini's facist moment is building momentum. After targeting refugees and the Roma Italian community, he is now promising "a mass cleansing, street by street, neighbourhood by neighbourhood". Time for all democrats to call him out as that which he is: a fascist on a rampage

— Yanis Varoufakis (@yanisvaroufakis) June 20, 2018

Correction 07/15/2018: The Foreign Minister of Austria in the Kurz government from 12/18/2017 to now has been Karein Kneissl; Heinz-Christian Strache has not been Foreign Minister. Strache is Vice Chancellor and Minister of the Civil Service and Sport.

Italy and the refugees rescued from the Mediterranean Sea on the Aquarius ship

Italy is still refusing to let the ship Aquarius with refugees rescued from the Mediterranean dock in Italy. (Steve Scherer and Massimiliano Di Giorgio, Italy and France try to patch up migrant row, draw papal rebuke Reuters 06/14/2018)

This is the new Italian face on immigration, and a grim, ugly start for the new left/right coalition government of Five Stars and the League. Interior Minister Matteo Salvini of the League is the public face of the policy. But the new Prime Minister Giuseppe Conte is going along with it. And, as reported by Dominik Straub und Irene Brickner in Nach geschlossenen Grenzen nun auch gesperrte Häfen Standard 13.06.2018, the ban on letting the ship with people in distress rescued from the ocean, a illegal position in international law that is the way it is for good reasons, could not have been implemented without the consent of the Five Stars Transportation Minister.

This is not a question of national security at all. It's a very cynical, bad-faith posture by the Italian government seeking to exploit nationalist hatreds as a basic part of its political project. As Reuters notes, "The [Italian Prime Minister and the French President] confirmed a lunch meeting on Friday to discuss 'new initiatives' on immigration, a day after Italian Interior Minister Matteo Salvini announced an 'axis' with Germany and Austria to fight illegal migration." (my emphasis)

Salvini's talk has to be taken seriously, though like our American xenophobes, we can't assume they have any particular devotion to accuracy in their public claims. Austria does have an anti-immigrant government, a coalition of conservative Christian Democrats and hard-right Putinists, i.e, the Freiheitliche Partei Österreichs (FPÖ), which has a formal "working agreement" with Putin's Russia United party. (Rechtspopulisten und Putin-Partei rücken enger zusammen FAZ 19.12.2016) The FPÖ/Russia United agreement commits them to the "strenthening of friendship and raising the young generation in the spirit of patriotism and joy in labor." Kind of an "Arbeit macht Frei" kind of thing, apparently.

But whatever political "axis" there may be among the Italian League and the Austrian governing parties, both Italy and Austria are EU members and both are still bound by general international law. In Germany, Interior Minister Horst Seehofer, a rightwing leader from Bavaria who is from the CSU, one of the parties in Angela Merkel's national coalition, has been playing footsie lately with Austria's Christian Democratic Chancellor Sebastian "Babyface" Kurz on anti-foreign politics. But, for all of her government's failings on immigration issues - and the general impression in the US that Merkel is very pro-immigration is a mistaken one - she isn't making a "axis" with Italy to drown immigrants in the Mediterranean Sea. The strange courtship between Chancellor Babyface and is actually aimed politically against Merkel.

(Dont' even try to shoehorn the mixing of internal and external policies in the EU into the framwork of the discussion on the Russian meddling in the US elecitons; you'll just give yourself a headache.)

Not to understate what a prick Seehofer is being on the subject. He is claiming that as Interior Minister, he has the authority to turn back refugees at the border, Angela Merkel and international law be damned. (Asylstreit: CSU droht mit Alleingang und Ultimatum ORF 147.06.2018) So far, this looks more like a weird political stunt than an actual move on immigration policy. But I wouldn't want to underestimate the possibility of it turning into something worse.

Immigration and the eurozone are currently the two biggest threats to the future of the EU. Both have been hampered by nationalist posturing by EU countries. Although as the de facto leader of the EU, Germany, and Angela's Merkel's governments in particular, bear the heaviest responsibility for it. I think of the both as chronic crises, both of which hit acute turns in 2015. Both are currently "solved" by classic Merkel extend-and-pretend non-solutions, forcing Greece to become Bangladesh via draconian austerity policies, on the euro front, and by contracting out the solution of the Mediterranean refugee problem to Turkey, Italy, and Greece. Both are highly unstable solutions.

The sad part is that the general shape of realistic solutions are very clear. The eurozone either has to be unwound with a return to national currencies, or change it into an optimal currency area with a common budget, shared public debt obligations, and "transfer union" structures.

With immigration, the broad solution is also clear: stop supporting wars in the Middle East, whether by direct intervention, facilitating American or Russian intervention, or selling arms to belligerent parties; get real about the fact that mass immigration to Europe is for all practical purposes a permanent situation that requires a structured, systematic sharing of burdens, i.e., accepting refugees, including, yes, the richer countries like Germany and Austria; and, systematic development work in North Africa to provide safer conditions and better opportunities there. Did I mention that to stop supporting wars in the Middle East is a critical part of this? Oh, and getting emergency services in shape to handle entirely predictable future surges in immigration.

But the obvious eurozone and refugee solutions aren't being undertaken as they should be, largely because too many political parties and groups and business lobbies like weapons manufacturers in particular find it advantageous to demagogue the issues.

But reality does have a nasty way of catching up with wishful thinking and flat-out denial. Facts do matter, despite being singularly inconvenient for narrow nationalists and xenophobes. Turkey, Italy, or Greece could change the calculation overnight by just sending a bunch of the refugees they are holding to parts northward. That would be irresponsible in itself absent real practical agreements on how to do it. But Hungarian, Austrian, and German politicians would have to respond with more than slogans about "close the borders." Austrian Chancellor Babyface likes to claim credit for "closing the Balkan route," but that's a joke. Angela Merkel's agreement with Turkey is what mitigated the acute phase of the immigration crisis of 2015, not any whizbang diplomacy by Austria.

And there's this fact-based reporting from Straub und Irene Brickner, illustrating how cynical and dishonest it is for the Matteo Salvinis of the world to conjure up phony claims to justify xenophobic cruelty:

Frage: Wie viele Flüchtlinge haben die Mittelmeerstaaten heuer bisher aufgenommen?

Antwort: Italien hat in diesem Jahr bis zum 12. Juni insgesamt 14.441 Bootsflüchtlinge aufgenommen; hinzu kommen die 932 Migranten, die am Mittwoch von der italienischen Küstenwache in Catania an Land gebracht wurden. Insgesamt knapp 80 Prozent weniger als im Vorjahr. Spanien hat im laufenden Jahr bisher 11.308 Flüchtlinge aufgenommen, Griechenland 12.065. Es kann also keine Rede davon sein, dass Italien die ganze Immigration allein schultere. Wahr ist aber, dass die nördlichen Grenzen Italiens – jene nach Frankreich, in die Schweiz, nach Österreich und Slowenien – für Flüchtlinge seit langem faktisch geschlossen sind.

[Question: How many refugees have the Mediterranean states taken on up until now?

Answer: Italy has taken 14,441 boat refugees; that includes 932 migrants who were brought to land by the Italian Coast Guard in Catania on Wednesday. In all, 80% less than in the previous year. In the current year, Spain has accepted 11,308 refugees, Greece 12,1065. So that can be no claim that Italy is shouldering the whole immigration alone. But what is [true], is that the borders north of Italy - that to France, in Switzerland, to Austria and Slovenia - have in fact been closed to refugees for a long time. [my emphasis in italics]